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Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper,...

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Energy Efficiency Less energy, same service
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Page 1: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Energy Efficiency

Less energy, same service

Page 2: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

A Watt Saved is a Watt Earned

• “There’s no cheaper, cleaner power than the power that you don’t have to produce” –Gary Zarker

Page 3: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

End Use/ Least-Cost Thinking

• Most people don’t demand kilowatt-hours of electricity or barrels of oil, but rather the end-use services they provide—lighting, air-conditioning, mobility…

Page 4: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

• Traditionally, electric companies have been in the business of supplying electrons from giant, centralized systems to gain economies of scale.

• Many have realized that it is more profitable to help their customers save electricity than to sell them more of it (thus losing economies of scale).

Page 5: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Energy Policy Act of 2003• Requires a 20% reduction in federal building energy

use by 2013.• Adds funding for energy efficient programs for public

buildings.• Increases fuel efficiency standards for federal vehicles.• Authorizes $3.4B for each fiscal year through 2006 for

the Low Income Housing Assistance Program.• Expands the energy star program.• Establishes new efficiency standards for commercial

and consumer products.

Page 6: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Tunneling Through The Cost Barrier

• By the time the design for most human artifacts is completed but before they have actually been built, about 80-90 percent of their lifecycle costs have already been committed.1

Page 7: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Effective Designs Are Not Optimized in a Vacuum

• Designs in nature are optimized in coevolution with the ecosystem.

• For the same reason, an engineer cannot design an optimal fan except as a part of an optimal cooling system which in turn is a function of the building it is in (optimally designed considering the neighborhood, culture, climate…)

Page 8: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Start Downstream to Turn Compounding Losses into

Savings.• Manufacturing carpet requires melting bitumen by

means of a hot oil pumping loop. • Engineers optimize pipe size in isolation by

comparing the extra cost of a fatter pipe with the energy it can save through less pumping.

• Redesigning this pumping loop cut Interface’s power requirements from 70.8 to 5.3 kW (substituting 7 for 95 horsepower pump: a 92% energy reduction), cost less to build, and worked better in every way.

Page 9: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Principles applied to gain the efficiency

• Big Pipes (fat, short and straight), small pumps (not the other way around)

• Lay the pipes first, then the equipment (not the other way around)

Page 10: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Benefits

Counted•92% less pumping energy•Lower capital costs•70kW less heat loss from pipes

Not counted•Less space, weight, noise•Easier maintenance•Longer equipment life

Page 11: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Why This Matters

• Motors use 3/5 of the world’s electricity.• Pumping is the biggest use of motors.• Most of the motor’s energy is spent fighting

friction.• Saving one unit of friction in the pipe saves

10 units of fuel at the power plant.• Almost every energy-using system has been

mis-designed in the same way.2

Page 12: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Tunneling Through The Cost Barrier, Revisited

MC

MB

Cummulative Energy savings

$

Cost barrier

Page 13: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Energy loss or Energy Saving?

Page 14: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Energy loss or Potential Saving?

• Typical industrial pumping system contains so many compounding losses that about 100 energy units of fossil fuel will deliver only ten energy units of flow out of the pipe.

-OR-• Saving one unit of energy furthest downstream

(reducing friction in the pipes) avoids enough compounding losses to save ten units of fuel, cost, and pollution back at the power plant.

Page 15: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Downstream First

• This compounding effect enables each successive component, as you go back upstream, to become smaller, simpler and cheaper.

• Downstream savings merit the greatest emphasis because they reduce both energy and capital costs.

Page 16: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Do things in the Right Order

…so as to maximize their favorable interactions.

• E.g. Retrofitting lighting and AC– Do lights first– Require a smaller AC

Page 17: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

New Construction

• Government Use• The federal government is the single largest

user of energy.• Energy costs can be up to ten percent of the

government’s operating budget• State and local governments spend up to 11

billion dollars annually on fixed-site energy costs

Page 18: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”
Page 19: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

• Office Buildings and Retail• Retail and office buildings account for thirty-five

percent of energy use and sixty percent of annual electricity use

• Thirty-seven percent of total energy costs in retail buildings is lighting

• Office equipment make up sixteen percent of the total energy used by an office building

Page 20: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Building to Increase Energy Efficiency

• Instead of viewing a potential new building as a collection of parts, using whole-building design is the best way to achieve maximum energy efficiency.

Page 21: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Materials to Achieve Energy Efficiency

• HVAC—Natural gas-powered absorption chillers/heaters; radiant floor heating; passive solar heating

• Daylighting• Biodegradable

materials, sustainably harvested wood, low water use equipment

• Window Glazing, compact fluorescent lighting

• Building-integrated photovoltaic panels

• Fuel Cells• Insulation

Page 22: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Costs

• Most estimates in building a “green” building is five to ten percent more than a regular building

• The Cambria Office building in Pennsylvania cost an estimated $93 per square foot.

• Additional costs to the Lockheed Building 157 was $2 million.

• The ING Bank put its “green” costs at $700,000.

Page 23: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Benefits

• In general, a 40-50% reduction in energy costs can be expected.

• Lockheed Building 157 experienced annual savings of $500,000.

• ING Bank yielded savings of $2.6 million in the first year.

• In addition, both companies reported absenteeism down by 15%

• In some cases, retail stores have reported up to a 25% increase in sales in daylit portions of stores.

Page 24: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

• By optimizing a building’s standard components such as the site, windows, walls, floors, and mechanical and electrical systems, one can substantially reduce energy use and costs without a drastic increase in construction costs

Page 26: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Energy Efficiency Upgrade

Purchase

Price1

Annual Bill

Savings2Simple

Payback (yrs)Rate of Return

Fluorescent Lamps & Fixtures $200 $80 2.5 41%Duct sealing $250 $95 2.6 41%ENERGY STAR® Clothes washer $194 $66 2.9 37%ENERGY STAR® Programmable Thermostat

$107 $29 3.7 30%

Water Heater Tank Wrap (R-12) $85 $23 3.7 28%ENERGY STAR® Refrigerator $97 $23 4.2 27%ENERGY STAR® Heat Pump $692 $126 5.5 19%ENERGY STAR® Dishwasher $29 $5 5.5 18%Air sealing to 0.5 air changes per hour

$522 $38 13.7 9%

Increase wall and attic insulation $1,784 $111 16.1 8%Total $3,960 $597 6.6 16%

Page 27: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”
Page 28: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Energy Efficiency

• The largest energy savings to date have been accomplished by energy efficiency standards and by targeted incentives for products currently available in the marketplace.

• For example, appliance efficiency standards adopted to date will cut U.S. electric peak demand in 2020 by 120,000 MW, or over 12%, while saving some $200 billion

Page 29: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Energy Efficiency

• Applies to everything from the building envelope, which includes energy efficient windows, insulation, foundation, and the roof, to appliances, lights, and air-conditioning systems.

• It also applies to space heating and cooling systems, which are aided through the use of automated controls, ventilation, improved duct systems, and other advanced technologies.

• Energy efficiency can also apply to water heating when combined with water-efficient appliances and fixtures that will save water, energy, and money. http://www.nrel.gov/buildings/pv/h_energy_solar.html

Page 30: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Thermal Envelope

• A house's thermal envelope includes its roof, walls, floors, windows and doors; in other words, every item that separates the inside from the outside.

Page 31: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Insulation• Insulation is measured in terms of its resistance to heat loss or "R-

value." Twice the R-value means half the heat loss, so higher R-values are generally desirable.

• Never compress insulation as this reduces the air spaces that keep the warmth in.

• Walls and Floors: In addition to your attic, insulating under the floor, around hot water pipes and heating ducts, and in crawl spaces will make a big difference in your energy bills.

• Patch cracks and insulate in heated basements.• If unheated: seal spaces around heating vents and other

openings to the heated part of the house (but be careful not to block vents that allow moisture to escape!).

• Before you remove old insulation, check to make sure it's not asbestos.

Page 32: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

• The potential energy savings draft reduction may range from 5% to 30% per year, and the home is generally much more comfortable afterwards.

• Just the gaps around windows and doors in an average American house are the equivalent of a 3 foot by 3 foot hole in the wall!

Leaks and Drafts

Page 33: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Attics

• Start by making sure your attic is well insulated. This step alone can save 20-35% in heating costs and up to 35% on air-conditioning costs.

• Seal holes with caulk or compressed fiberglass insulation.

• Adding roof vents (otherwise your attic will trap hot air in the summer).

• Weather-strip or caulk around doors and windows.

Page 34: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Seal leaks

• Around electric switches and outlets. And choose vinyl or wood frames instead of aluminum framing.

• Stop air from escaping under outside doors with easy-to-install "sweeps" or "shoes.“

• Seal gaps around loose window panes with window putty.

• Weatherization reduces an average home's energy costs by $218 a year. For every dollar spent, weatherization

returns $1.40 in energy savings over the life of the measures.

Page 35: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Curtains and Drapes

For keeping warm during the winter months, consider installing storm windows or new double-

pane windows.

• An effective way to shield out the sun during the summer, especially if they are lined with a white backing.

Page 36: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

U-level

• The National Fenestration Rating Council (NFRC) label. It should be 0.35 or lower.

• Choose high-efficiency options: such as windows with low-e coatings or argon filling.

• These can greatly reduce the tremendous amount of heat that escapes through typical single-pane windows.

Page 37: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Cool Savings: The Super-Efficient Refrigerator • Refrigerators commonly account for as much as 20%

of household electricity use. • A coalition of electric utilities and environmental

organizations recently challenged American manufacturers to design a super efficient refrigerator that minimized the use of ozone-depleting CFCs. They succeeded. That means if you're in the market for a new refrigerator in the next few years, you may be able to choose one that uses as much as 30% less energy than competing models and contains 90% fewer ozone depleting materials.

Page 38: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

A Bright Idea: The Compact Fluorescent

• Fit in most household fixtures and give off the same warm, steady light as incandescents, but use only a quarter of the energy!

• Compact fluorescents are initially more expensive, but each bulb lasts 10X as long as incandescent, and saves as much as $30 - $40 in energy costs over its life.

• Energy for lighting accounts for about 10% of your electric bill

Page 39: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Shop for Efficiency

• One of the best ways you can help change the way America uses energy is by being an energy-smart consumer.

• When it's time to retire an old appliance, you can typically replace it with a new model that uses only half the energy.

• Even though high efficiency models may cost extra, most will more than make up the difference in energy savings over their lifetime.

Page 40: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Appliances

• If you live in a typical U.S. home, your appliances are responsible for about 20% of your energy bills. Refrigerators, freezers, clothes washers, dryers, dishwashers, and ranges and ovens are the primary energy-using appliances in most households (hot water heaters are discussed in the Water Heating section). Taking steps to save energy while using these appliances, and replacing old inefficient appliances with modern ones, can save you money.

Page 41: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Look for energy-saving features.

• Labels on most major household appliances tell you how the energy costs for a particular model compare to those for similar models.

• Air conditioners - An "EER" rating of 12 is good, 14 or more is excellent. Consider your specific needs: appropriate size and model of appliance, oversized air conditioner or water heater = wasting energy and money.

• An air-dry setting can cut the energy use of a dishwasher by 40%

• Clothes washers w/ adjustable water levels & dryers with moisture sensors & cool-down cycles also save energy.

Page 42: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

ENERGY STAR

• A government-backed program • Protect the environment through

superior energy efficiency. • Last year alone, Americans, with the

help of ENERGY STAR, saved enough energy to power 20 million homes and avoid greenhouse gas emissions equivalent to those from 18 million cars - all while saving $9 billion.

Page 43: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Energy Star new homes are designed to save 30% of HVAC (heating, ventilation and air conditioning) and hot water. These two end uses typically make up around 60% of the total bill, so the Energy Star new home will save about 20% of the total bill. These homes have no restrictions, or rules about the appliances and gadgets that the owners can bring in, so there are no savings in these areas.

Page 44: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Energy Star new homes are designed to save 30% of HVAC (heating, ventilation and air conditioning) and hot water. These two end uses typically make up around 60% of the total bill, so the Energy Star new home will save about 20% of the total bill. These homes have no restrictions, or rules about the appliances and gadgets that the owners can bring in, so there are no savings in these areas.

Page 45: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

If you were to retrofit an existing home with the equivalent measures used in an Energy Star new home by making HVAC and hot water improvements and bringing in efficient appliances, you conceivably could realize greater savings than an Energy Star New Home, depending on the quality of your retrofit job.

Page 46: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Retrofits on existing housing are generally more expensive than incorporating the same efficiency measure into the construction of a new home, and they may not work as well, depending on the quality of work. Visit our Home Energy Advisor to see the potential savings from retrofiting your house... http://hes.lbl.gov/hes/answerdesk_dat.html

Page 47: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Energy Efficient Choices

• Can save families about a third on their energy bill with similar savings of greenhouse gas emissions, without sacrificing features, style or comfort.

• If looking for new household products, look for ones that have earned the ENERGY STAR. They meet strict energy efficiency guidelines set by the EPA and US Department of Energy.

Page 48: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

The typical household spends $1,400 a year on energy bills. With ENERGY STAR, you can save

up to 30% or more than $400 per year.

Page 49: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Small Things = Big Savings

• Switch off unused lights • choose the right appliance for the job• clean the lint filter in your dryer after every use. • Keep heating and air conditioning systems properly maintained

and tuned. This includes changing air filters and keeping air conditioner coils clean and straight.

• programmable thermostats can reduce the energy used for air conditioning or heating by 5 to 30%. I• install low-flow showerheads and faucet aerators, • wash full loads in your dishwasher and use short cycles for all

but the dirtiest dishes

Page 50: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

(3) Wrap your water heater in a water heater blanket, especially if it's located in an unheated part of the house. Also insulate hot water pipes leaving the heater. Set the temperature at 120 degrees for normal use; for dishwashers without temperature boosters, set the water heater at 140 degrees. (4) Save water and the energy needed to heat water.

Page 51: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

(c ) set the appropriate water level for different size loads in your clothes washer, wash in cold water when practical, and always rinse in cold. (5) Set the temperature of your refrigerator at 38 to 42 degrees Fahrenheit; your freezer should be set at 0-5 degrees Fahrenheit. Use the power-saver switch if your refrigerator has one and make sure the door seals tightly.

Page 52: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

http://www.nrdc.org/air/energy/ghome.as When buying or replacing products or appliances for your home, look for the EPA ENERGY STAR® label — the national symbol for energy efficiency

Page 53: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Landscaping

Page 54: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Utility Incentives

• Rebates, grants, or other financial assistance are offered by an energy utility for the design and purchase of certain energy-efficient systems and equipment. These financing mechanisms are not mutually exclusive, i.e., an organization may use several of them in various combinations. The most appropriate set of options will depend on the type of organization (public or private), size and complexity of a project, internal capital constraints, in-house expertise, and other factors.

Page 55: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Market Incentives

• 1.5 cent/kw-hour tax credit. The federal government and states have been active in developing market incentives for renewable generation:Production tax credits were created by the Energy Policy Act of 1992. For every kilowatt-hour of electricity produced from wind, closed-loop biomass, and poultry waste, generators receive a 1.5 cent/kilowatt-hour tax credit.Renewable Portfolio Standards require a certain percentage of a utility's electricity sales or generating capacity to be produced from renewable resources. Each state defines "qualifying renewables" to suit its particular situation.

Page 56: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Public Benefits Funds

• are created through the collection of a minimal fee per kWh of electricity purchased.

• The funds can be applied to green power research, development, demonstration, and project development in the state. These funds, are found primarily in states that have restructured their electric markets in order to assure continued support of renewables, energy efficiency, and low-income support programs.

Page 57: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Net-Metering Rules

• Allow electricity consumers to get credits or deductions for excess electricity generated on-site. In essence, electricity is allowed to flow both to and from the electric grid. Some states restrict eligibility to particular customer classes.

Page 58: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Corporate tax incentives

• allow corporations to receive credits or deductions ranging from 10 percent to 35 percent against the cost of equipment or installation to promote renewable energy equipment. In some cases, the incentive decreases over time.

Page 59: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Property tax incentives

• typically follow one of three basic structures: exemptions, exclusions, and credits. The majority of the property tax provisions for renewable energy follow a model that omits the added value of the renewable device from the valuation of the property for taxation purposes. Property taxes are collected locally, so some states allow the local authorities the option of providing a property tax incentive for renewable energy devices.

Page 60: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Grant programs

• are offered in some states to encourage the use and development of renewable energy technologies. Most of these grant programs offer support for a broad range of renewable energy technologies, while some focus on promoting a particular type of renewable energy technology.

Page 61: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Rebate programs

• are offered at the state, local, and utility levels to promote the installation of renewable energy equipment. Most rebate programs are available from state agencies and municipally owned utilities, and support solar water heating and/or photovoltaic systems. Eligible sectors usually include residents and businesses, although some programs are available to industry, institutions, and government agencies as well. Rebates typically range from $150 to $4000. In some cases, rebate programs are combined with low or no-interest loans.

Page 62: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Loan programs

• offer financing for the purchase of renewable energy equipment. Utility loan programs for renewables are offered primarily by municipally owned utilities. State governments also offer loans to assist in the purchase of renewable energy equipment. A broad range of renewable energy technologies is eligible. In many states, loans are available to residential, commercial, industrial, transportation, public, and nonprofit sectors.

Page 63: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Direct equipment sales

• are offered by a few utilities. The utilities sell renewable energy equipment to their customers as part of a buy-down, low-income assistance, lease, or remote power program.

Page 64: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

Mainstay Energy Rewards Program - Green Tag Purchase Program Last DSIRE Review: 09/16/2003  

Incentive Type:  Production Incentive Eligible Technologies:   Solar Thermal Electric, Photovoltaics,

Wind, Biomass, Geothermal Electric, Small Hydroelectric, Renewable Fuels

Applicable Sectors:   Commercial, Residential Amount:  $1-$100 per MWh total production; Varies by

technology and contract length Terms:  Any size system, grid tied, new renewable (1/1/99 or

later) Website:   http://www.mainstayenergy.com/

Summary:Mainstay Energy is a private company offering customers who

install, or have installed, renewable energy systems the opportunity to sell the green tags (also known as renewable

energy credits, or RECs) associated with the energy generated by these systems.

Page 65: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

The GREEN TAG is a set of environmental benefits resulting from not generating the same electricity from fossil fuels, such as coal or natural gas. The renewable electricity offsets non-green power that would otherwise have been generated and delivered to the power grid.  The green tag also represents the fact that the renewable energy was generated with better emissions, or pollution, characteristics, than normal electricity.

Page 66: Energy Efficiency Less energy, same service. A Watt Saved is a Watt Earned “There’s no cheaper, cleaner power than the power that you don’t have to produce”

For example, 1,000 megawatt hours (MWh) generated at an average US power plant will result in the release of approximately 700 tons of CO2, 4 tons of sulfur dioxide, 2 tons of nitrous oxides, and additional amounts of carbon monoxide, mercury, and other pollutants.  All of these emissions are detrimental to the air, water, climate of the earth. The same 1,000 MWh from wind or solar generation produces no emissions. 

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Mainstay Energy has services for selling green tags from small and medium scale renewable facilities, which help bring revenues back to the owners of those installations.  This encourages further development of renewable installations and technologies. The electricity generated by the renewable project is consumed onsite or sold (via net metering) separately from the green tags. No environmental claims can be made for this power because the green tag now represents the entire package of environmental benefits associated with these specific megawatt hours.  For example, a renewable energy installation which has sold its green tags may not claim to be "renewable powered".  However, it could use language describing itself as "hosting renewable energy."

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These green tags will be brought to market as Green-e* certified products. Through the Mainstay Energy Rewards Program, participating customers

receive regular, recurring payments.  The amount of the payments depends on the type of renewable energy

technology, the production of electricity by that system, and the length of the contract period. Mainstay offers 3-, 5-, and 10-year purchase

contracts. The longer the contract period, the greater the incentive payment on a $/kWh basis. Typical payments, which are made quarterly,

are as follows:  - Solar PV: 2¢/kWh - 5¢/kWh (estimated $50 - $250/year for residential

systems, $300 - $3000/year for commercial)  - Wind: 0.2¢/kWh - 1.5¢/kWh  

- Biomass/biofuel electric: 0.1¢/kWh - $1¢/kWh  -

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Geothermal/Low-impact hydro: 0.2¢/kWh - 1¢/kWh  There is a $100 Certification Fee to get started with Mainstay Rewards.

This fee does not need to be paid in cash; the fee may be paid with future green tag sales. However, this fee is generally waived for participants who

opt for the 10-year contract.  The requirements are:   

1. The system must be grid-connected, but does not need to be a net "exporter" of electricity;  

2. This incentive is available in addition to any net metering agreement with the utility;  

3. The system owner must still have title to the green tags, or renewable energy credits. They cannot have been sold or transferred to any other

entity;

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4. The system must be a new renewable, which in most states means powered up on or after 1/1/1999 (Texas September 1999). This date is

different in some states, see the Mainstay Energy web site for exceptions;

5. The system generation must be metered separately for any systems over 10kW. For systems under 10kW, separate metering is not necessary.

Payments are made based on estimated production. Mainstay Energy is the first company in the U.S. to purchase green tags from small-scale renewable producers on a national scale. The Mainstay

Rewards Program currently has about 200 participants -- both commercial and residential.

   Contact: Hoyt Hudson Mainstay Energy

161 E. Chicago Ave. Suite 41B

Chicago, IL 60611-2624 Phone: (877) 473-3682

Fax: (312) 896-1515 E-Mail: [email protected]

Web site: http://www.mainstayenergy.com/index.php

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Solar and Wind-Powered Energy Systems Exemption Last DSIRE Review: 07/17/2003  

Incentive Type:  Property Tax Exemption Eligible Technologies:   Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Wind,

Biomass Applicable Sectors:   Residential

Amount:  100% Max. Limit:  None

Terms:  N/A Website:   http://www.seco.cpa.state.tx.us/re_incentives.htm

Authority 1:   Texas Statutes and Codes [email protected] Date Enacted:  1981

Summary:The Texas property tax exemption allows an exemption from taxation of the amount of the appraised value of the property that arises from the

installation or construction of a solar or wind-powered energy device that is primarily for the production and distribution of energy for on-site use.  

   Contact: Pam Groce Comptroller of Public Accounts

State Energy Conservation Office 111 East 17th Street, Room 1114

Austin, TX 78774 Phone: (512) 463-1889

Fax: (512) 475-2569 E-Mail: [email protected]

Web site: http://www.seco.cpa.state.tx.us

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Net Metering Last DSIRE Review: 05/13/2003   Incentive Type:  Net Metering Rules

Eligible Technologies:   Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Tidal Energy, Wave Energy

Applicable Sectors:   Commercial, Industrial, Residential Limit on System Size:  50 kW

Limit on Overall Enrollment:  None Treatment of Net Excess:  Purchase not to exceed avoided cost

Utilities Involved:  Applies to all PTB REPs, TDUs, and integrated IOUs that have not unbundled in accordance with Public Utility Regulatory Act § 39.051. Does not apply to municipal utilities,

river authorities, or electric coops. Authority 1:   PUC Substantive Rule § 25.242(h)(4)

Date Enacted:  9/23/85 Expiration Date:  None

Summary:Texas' net metering rule (i.e., Arrangements Between Qualifying Facilities and Electric Utilities § 25.242(h)(4)) was established by the Public Utility Commission of Texas to promote small wind power and photovoltaic generation in the state. The order requires certain utilities to offer a net

metering option to qualified facilities of 50 kW or less that use renewable resources. The rule applies to all Texas price-to-beat retail electric providers (PTB REPs), transmission & distribution utilities (TDUs), and integrated investor-owned utilities that have not unbundled in accordance with Public Utility Regulatory Act § 39.051. This rule does not apply to municipal utilities, river

authorities, or electric cooperatives. For customers of qualifying utilities, the utility must install a single meter that can read electric flow in both directions. There is no statewide limit on the

number of customers or total capacity under the net metering program.   

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San Antonio City Public Service - Distributed Generation Program Last DSIRE Review: 05/05/2003  

Incentive Type:  Net Metering Rules Eligible Technologies:   Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal

Electric, Tidal Energy, Wave Energy Applicable Sectors:   Commercial, Residential

Limit on System Size:  25 kW Limit on Overall Enrollment:  None

Treatment of Net Excess:  1.65 cents per kilowatt-hour (kwh) during non-summer months and 2.02 cents per kwh from June through September

Website:   http://www.citypublicservice.com/for_business/products/distributed_generation.asp Authority 1:  

Rider E5 - Customer-Owned Distributed Generation Renewable Energy Service Application Effective Date:  Spring 2002

Summary:CPS' distributed generation rate allows customers who produce energy at their home

or business to receive credit for any excess electricity they put back into the CPS power grid. To qualify, CPS electric customers must own and operate on-site DG facilities and produce up to 25 kilowatts (kw) or 25 kilovolt amperes (kva) to be

compensated for the excess electricity they generate.   The electrical generation equipment must be powered by renewable energy sources:  

- The sun (directly or indirectly)  - Moving water (waves, tides or hydroelectric facilities)  

- Wind  - Geothermal sources  

- Biomass and/or biomass-based waste products (including landfill gas)  

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If the customer uses more energy than their DG system produces, the additional electricity consumed is billed at regular CPS rates. Any excess energy produced in the month and put back into the CPS grid earns credit based on seasonal avoided energy costs.

Electricity put back into the CPS grid earns credits of 1.65 cents per kilowatt-hour (kwh) during non-summer months and 2.02

cents per kwh from June through September. The credit appears on the following month's bill.  

Customers are responsible for:  - The costs of interconnection with CPS and system protection facilities. CPS must make sure energy flowing from DG customers' equipment is

compatible with the electric system.  - The costs of any additional equipment such as a distribution

transformer, service line and/or meter facilities required for the interconnection with CPS.  

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Customers interested in taking advantage of the DG rate must fill out an application. All customer equipment -- up to the service point -- will be inspected by the City of San Antonio to ensure compliance with City of

San Antonio codes.   

For more information, please visit the CPS Distributed Generation website or call (210) 353-2815.

   Contact: Karma Nilsson City Public Service

7000 San Pedro San Antonio, TX 78216-6208

Phone: (210) 353-2815 E-Mail: [email protected]

Web site: http://www.citypublicservice.com

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Rural Development grant funds could be used to pay up to 25 percent of the eligible project costs. Applications for renewable energy systems were

allowed for a minimum grant request of $10,000, but no more than $500,000. Applications for energy efficiency improvements were allowed

for a minimum grant request of $10,000, but no more than $250,000. Eligible projects included those that derive energy from a wind, solar, biomass, or geothermal source, or hydrogen derived from biomass or

water using wind, solar, or geothermal energy sources.  Contact: Information Specialist - RBS United States Department of Agriculture

Rural Business-Cooperative Service USDA/RBS, Room 5045-S, Mail Stop 3201

1400 Independence Avenue SW Washington, DC 20250-3201

Phone: (202) 690-4730 Fax: (202) 690-4737

E-Mail: [email protected] Web site: http://www.rurdev.usda.gov/rbs

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April 01, 2004DOE Awards $128.2 Million to Weatherize Homes in 30 States and

the Navajo NationSecretary of Energy Spencer Abraham announced on April 1st the award

of $128.2 million to 30 states, plus the Navajo Nation, to improve the energy efficiency of the homes of low-income families. Such families

spend an average of 14 percent of their income on energy, compared with 3.5 percent for the average U.S. family.

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The program is delivered through the states and 970 local agencies, and gives priority to low-income households with elderly members, people with disabilities, and children. The funding for DOE's Weatherization

Assistance Program in fiscal year 2004 is $227 million, which is expected to cover the weatherization of about 94,450 homes. President Bush has requested $291.2 million for the program in fiscal year 2005. See the

Weatherization Assistance Program Web site.http://www.eere.energy.gov/news/news_detail.cfm/news_id=6779

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Austin Energy green power sales #1 in the country; price is also lowest in U.S. Austin Energy sold more than 289 million kilowatt-hours of renewable energy last year, significantly more than second place Portland General Electric with 188.6 million kWh and more than twice that of third ranked Sacramento Municipal Utility District (SMUD) which had 143.1 million kWh in green power sales.

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Last year, the Austin Independent School District became the largest subscriber of renewable energy by a school district in the nation and the largest subscriber to Austin Energy's GreenChoice program subscribing for 45 million kWh of green power annually. Also last year, Concordia University in Austin became the first college in the nation to subscribe to 100% of its annual electricity needs from green power.

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Current subscriptions to GreenChoice total almost 370-million kWh with 287 businesses and 7,200 residential customers participating. Forty-one Austin companies subscribe to 1 million kWh or more of green power and 257 companies subscribe to green power for 100% of their power needs. In fact, Austin Energy has more companies that qualify for a U.S. Environmental Protection Agency green power recognition program than are currently enrolled in the program nationwide.

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Austin Energy was also one of the first utilities in the nation to provide a fixed cost component in its green power program as a hedge against the rising fossil fuels costs. GreenChoice subscribers see the fuel charge on

their utility bill replaced by a GreenChoice charge that stays fixed for the 10-year life of our green power contracts. Last year, the Austin City

Council approved the purchase of an additional 93 megawatts of wind-generated electricity, almost doubling Austin Energy's existing 101 MW of renewable energy. http://www.treia.org/news.php?anchorat=100#gohere

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With the success thus far of the state’s Renewable Portfolio Standard (RPS) requiring the installation of 2,000 megawatts of new renewable energy capacity by 2009, Texas has shown how a well crafted statewide policy can get results. While our construction of over 1,000 of those megawatts of capacity by the end of 2003 is impressive, as a percentage of overall statewide electric demand (over 60,000 MW at peak), we’ve barely scratched the surface. And several other states have now made percentage commitments that significantly exceed our modest 3% beginning.

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The time has come to expand our energy base. During this time of celebrating Texas independence, let us resolve as Texans to encourage our leaders to commit to the expansion of our Renewable Portfolio Standard to no less than 10% at the earliest possible date. TREIA’s analysis shows that achieving 20% renewables by 2020 is eminently doable, and for the health of our state – highly desirable.

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The Rocky Mountain Institute

http://www.rmi.org

Natural Capitalism

http://www.natcap.org/

Department of Energyhttp://www.eere.energy.gov/

Sustainable Buildings Industry Councilhttp://www.sbicouncil.org/


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